Fintech Takes Canada Leapfrogs on Open Banking
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Feb 25, 2026 Dan Murphy, founder of Sunset Park Advisors and former CFPB official with open banking policy experience, and Steve Boms, Executive Director of FDATA North America and fintech policy advocate, discuss Canada’s leap in open banking. They cover why Canada learned from other countries, the move from read-only to write access, regulatory design choices, liability and traceability, and how timing and market structure shaped reform.
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Conservatism Plus Oligopoly Slowed Market Adoption
- Canada combines cultural conservatism with an oligopoly where five banks hold about 90% of deposits, slowing market-led open banking.
- Customer terms often prohibit sharing credentials, so adoption lagged until policy shifted incentives.
Consumer Stress Data Drove Policy Momentum
- Survey data showed over half of Canadian consumers and small businesses feel stressed managing basic financial tasks.
- Stress was much higher for women, new Canadians, minorities, and very small businesses, driving policy urgency.
Don't Make Regulators The Technical Standards Engine
- Avoid making regulators the sole prescriptive standard-setter for technical API specs unless they will run and maintain them.
- Let an appointed body or industry coordinate technical standards to reduce regulator maintenance burden.